Direct profit per product

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Direct product profit is a term more frequently used in the field of distribution. It is in fact a method to analyze and calculate the profitability of a product. But the direct profit per product can be globalized. Indeed, this method can be brought back to the square meter or the linear meter. In this case, it allows to optimize the shelf space and to define, for example, the ideal facing of a product.

As a reminder, the facing designates the number of similar products presented on one or more shelves in a physical store. These products are installed in such a way as to face directly the consumers and customers.

Previously neglected, direct profit per product is now back in the spotlight. Retailers are using it to determine which products :
– which products are best stocked for future profitability,
– which it is better to offer on a just-in-time basis.